Thursday, April 22, 2021

"China to strengthen raw material price supervision, crack down on speculators"

It's all fun and games until iron approaches all-time highs.

From Reuters via, April 21:

China will take steps to stabilise raw material prices and strengthen supervision of the market after a spike in prices for commodities such as steel, nonferrous metals and petrochemicals, the country’s industry ministry said on Tuesday.

Rising commodity prices – driven by higher raw material costs, a recovery in downstream demand and speculation from the financial market – have increased Chinese manufacturers’ costs and squeezed margins, Ministry of Industry and Information Technology spokesman Huang Libin said at a press conference.

“This round of commodity prices rise has had impact on the manufacturing sector but is manageable overall,” Huang said.

Growth in China’s output of home appliances such as air conditioners, refrigerators and washing machines, and machineries has “largely” outpaced increases in steel, copper and aluminum production, tightening the supply-demand balance, he added.

The ministry will work together with relevant departments to stabilise prices, fend off panic buying or hoarding and “resolutely” crack down on market monopoly and malicious speculation, Huang said, without elaborating....